Premium Nickel Resources (PNR), the Canadian firm recently appointed the preferred bidder for BCL Mine, has signed a Memorandum of Understanding with the mine's liquidator that governs the six month due diligence period.
In a statement to investors on Wednesday, PNR CEO, Keith Morrison said besides various studies to be conducted as part of the due diligence, the firm would also negotiate definitive agreements to finalise terms on the prioritised assets to be purchased.
He said PNR’s goal was to show the potential economics of redeveloping BCL assets to produce nickel, copper and cobalt in an environmentally sound manner with appropriate social and corporate governance responsibilities.
Morrison said to achieve this, extensive
BCL Mine and Tati Nickel in Francistown, were closed in October 2016 as government deemed them too costly to operate given the prevailing base metal prices.
PNR has said its eyes are on reviving BCL Mine with an eye on the electric vehicle component market.